IVAs for high earners rise 10-fold

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The number of highly paid workers turning to individual voluntary arrangements (IVAs) has increased ten-fold thanks to the credit crunch, according to comparison site IVA.com.

IVA.com says the number of people earning more than £50,000 requesting IVAs, which allow people with unmanageable unsecured debt to pay back what they can before creditors write off the outstanding balance, rose from four last year to about 40 in the last two months. Terry Balfour, director of IVA.com, attributes the rise to people living to their means and finding themselves unable to cope with the rising cost of debt. He says: “[They have] been in highly paid job and they’ve bought a house and car and a lifestyle that matches that. If they lose their job and have to take a lower paid jo...

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